Godrej Consumer sees inflation softening Q1 earnings

Godrej Consumer Products Ltd expects high food inflation to mute first quarter earnings growth, but a widely expected better monsoon could improve profits later in the fiscal, a top official said.

Godrej Consumer Products Ltd expects high food inflation to mute first quarter earnings growth, but a widely expected better monsoon could improve profits later in the fiscal, a top official said.

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"I think it will be muted for two reasons. One is, there are no price increases except in the FMCG food business. Secondly, because of high food inflation," Adi Godrej, Chairman told Reuters in an interview on Friday.

"However this will change to my mind from June onwards, because food inflation will come down with the monsoon."

Godrej said he is still on the look out for acquisitions as he has utilised only 20 billion rupees of the 30 billion rupees the company's board had approved to be raised through equity and debt in Dec 2009.

He also said the firm by this month will launch a 6 billion rupees QIP and has appointed Kotak Securities and HSBC as the bankers for the issue.